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Indiana State Legislative Update February 1, 2021

February 01, 2021 11:41 AM | Deleted user


After a week off due to concerns surrounding potential protests at the Indiana Statehouse, lawmakers returned to Indianapolis and promptly resumed their work. This week the legislative calendar was packed with a full slate of committee hearings. As the calendar flips to February, committees will have roughly two weeks to pass bills in order to keep them alive for consideration for the remainder of session.

Several bills important to the banking industry saw action this week. Arguably, HB 1056 is the most impactful bill to date. HB 1056, which fixes the issues that arose last summer requiring a second witness to proof documents for recording, passed the House unanimously, 95-0. Because of its significance, the Senate Judiciary Committee is scheduled to hear HB 1056 on Wednesday, Feb. 3. The goal is to pass the bill quickly and move it to the desk of Gov. Eric Holcomb to be signed into law. HB 1056 would be effective upon the governor’s signature, providing needed relief for the industry.

With the clock winding down on committee work before bills flip to the opposite chamber, the next two weeks will be extremely active and fast-paced. The IMBA Legislative Team continues to engage on important issues, some of which are highlighted below.


SB 346 – Financial Institutions and Consumer Credit

Sen. Eric Bassler (R-Washington)

Why it matters

For purposes of the statutes governing (1) first-lien mortgage transactions, (2) the Uniform Consumer Credit Code and (3) financial institutions; changes references to federal laws within those statutes from federal laws as in effect on Dec. 31, 2019, to federal laws as in effect on Dec. 31, 2020.Amends the statute concerning loans made by credit unions to their members to eliminate certain requirements with respect to loans secured by real estate. Amends the definition of “check” for purposes of the statute governing licensed cashers of checks to remove a reference to a “personal money order.” SB 346 is the annual bill of the Indiana Department of Financial Institutions, which every year suggests changes to law that it deems necessary, based primarily on findings from examiners. The IMBA supports the legislation.

Latest action

The bill was assigned to the Senate Committee on Insurance and Financial Institutions and is scheduled for a hearing on Wednesday, Feb. 3.

Learn more about SB 346

SB 1 & HB 1002 – Civil Immunity Related to COVID-19

Sen. Mark Messmer (R-Jasper)

Rep. Jerry Torr (R-Carmel)

Why it matters
This is a broadly applied immunity bill for COVID-19 liability supported by a coalition of business trades and other individual entities. The House also has a bill that creates immunity from COVID-19 liability-related lawsuits. SB 1 differs from the House version of immunity in application, as SB 1 is more premise-based regarding immunity. The IMBA supports the general approach to provide immunity to businesses from COVID-19-related lawsuits.

Latest action
SB 1 passed third reading on Jan. 28 by a vote of 40-8. HB 1002 was heard on second reading on Jan. 28 and is awaiting a full third-reading vote.

Learn more about SB 1

Learn more about HB 1002

HB 1056 – Recording Requirements

Rep. Jerry Torr (R-Carmel)

Why it matters
This bill is the “fix” to the second witness requirement to record instruments that arose from the interpretation of language change “or” to “and” in SEA 340 from the 2020 session. House Bill 1056 also retroactively applies the language to all instruments recorded after July 1, 2020. The IMBA is in support of the legislation.

Latest action
The House Judiciary Committee heard HB 1056 on Jan. 6. The IMBA was present and testified in support of the legislation. The bill was heard on third reading on Jan. 26 and passed 95-0. Sen. Brown has been named the sponsor in the Senate. The bill has been scheduled for a hearing in the Senate Judiciary Committee on Feb. 3.

Learn more about HB 1056

HB 1255 – Probate and Property Matters

Rep. John Young (R-Franklin)

Why it matters
This bill comes from the Indiana Bar Association and makes various changes to wills, powers of attorney, trust, conveyances and county recorders. Notably, the bill also attempts to fix the second witness issue created from the passage of SEA 340 from last session. The bill also places requirements on county government to accept and record electronic documents.

Latest action
The bill was passed out of the House Judiciary Committee on Jan. 25.

Learn more about HB 1255

HB 1314 – Recorded Discriminatory Covenants

Rep. Jerry Torr (R-Carmel)

Why it matters
The bill makes an important change in creating a process to repeal an existing discriminatory covenant.

Latest action
The bill was passed out of the House Judiciary Committee on Jan. 26.

Learn more about HB 1314

Contact Us:

@ Indiana Mortgage Bankers Association

8425 Woodfield Crossing Blvd, Ste 155e

Indianapolis, IN  46240

Office: (317) 333.7146

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